DAX sets a record weekly close

On Friday the DAX set an all time record daily and weekly close, when it ended the session, 130 points higher, at 16,759. The DAX was not the best performer on the day though, as that mantle in percentage terms belonged to the CAC 40, with a 1.32% gain on the day. The DAX put on 0.78% last Friday. Overnight the DAX futures were pricing a reopening at above 16,825 at one stage, probably buoyed by gains in the Nikkei 225, but in truth the German benchmark is not looking around for excuses elsewhere at the moment and seems to be in charge of its own destiny right now. That said, the index is of course in uncharted territory, but the reader is reminded of what was said here last week, regarding the upper end of a long-term trading channel at around 17,500. So, it remains to be seen, whether or not that is a viable target from here on. Even if it is, it will not be a straight line to get there. With that in mind I note the 14 day RSI is around 83.75 this morning and so clearly still in overbought territory. The DAX futures are just now pricing the opening at around 16,785